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A 10-year bond that pays coupon semi-annually at a coupon rate of 9% is priced at...

A 10-year bond that pays coupon semi-annually at a coupon rate of 9% is priced at $ 900 at its issuance. What is the Yield to Maturity of the Bond? (7 points) If it is called back 3-years after the issuance will a call premium of 5%. What is its Yield to Call? please show all work

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Answer #1

SOLUTION:-

PMT = fv x coupon rate/2 FV = face value price = pv NPER (number of payments) 20 rate = YTM -RATE(NPER,PMT,-PV,FV)*2 10.65% 4

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